Birla Sun Life Dynamic Bond has been around since September 2004 and since its launch, it has maintained a record of positive returns in each and every quarter. Its three-year annualised returns (ended August 31), stands at 9.98 per cent, 289 basis points ahead of the category average. At its worst, the fund has given ayearly return (June 8, 2005 - June 8, 2006) of 4.54 per cent, still better than quite a few of its peers.
The fund attempts to maintain a highly liquid portfolio. The manager, Maneesh Dangi, achieves this by maintaining a diversified portfolio of different maturities. Over the years, the fund managers have varied the portfolio maturity with the prevailing interest rates. In the past year, Dangi has kept the average maturity at 1.32 years. The fund manager generally populates the portfolio with certificates of deposit (CDs) and debentures issued by financial companies. Currently, the portfolio's exposure to financial companies is at 69.03 per cent.
But such an impressive performance comes at a cost; the fund's expenses have been on the higher side. Though it has gone as low as 0.15 per cent, it has also gone up as high as 1.58 per cent. Currently, it is one per cent.
Overall, a definite winner.
